Couchsurfing is quite a thing in Reykjavik, and has a huge community in its database. Anyone looking to save some money on accommodation must give a try on couchsurf. Also, you get the advantage of a local guide who can offer you insights on all of the attraction and also point you into some very interesting and intriguing directions.
Why rent an apartment or book a hotel room when you can find a really cheap place on Airbnb? Especially when you are with friends, Airbnb has a great listing for Reykjavik. Anyways, dorm bends in hostels will cost you 3,500 to 7,500 ISK ($30-$65 USD) per person per night and an entire decent apartment on Airbnb will cost you only 11,500 ISK ($100). Which one is a better deal?
There is still a cheaper option of staying in Reykjavik, and it’s camping. If you are ok with being away from the city center and save tons of money in return, you can camp at Reykjavik campsite. The cost for one night is only 1,900 ISK, the cheapest option you can get.